$3 Gas In NJ? Prices Fall With Christmas Travel Approaching

NEW JERSEY — Unless your vehicle is powered by reindeer, the downward trend of gas prices may add some sparkle to your holiday season. Exorbitant fuel costs dominated 2022, but gas in New Jersey is now cheaper than last holiday season's prices.

It's not a Christmas miracle, nor did the hearts of oil executives grow three sizes. A combination of factors — including low demand, greater supply and lingering market fears of an economic slowdown — have driven New Jersey gas closer to, and sometimes less than, the $3 per gallon mark, according to industry experts.

The state average for a regular gallon of gas totaled $3.29 as of Monday, according to AAA. While higher than the national average of $3.14, that's still an improvement over New Jersey fuel costs a year ago, which averaged $3.46, and well lower than June 13's record mark of $5.05.

Prices have reduced as the holiday-travel season approaches its peak. AAA predicted that 113 million Americans will travel 50 miles or more for the holidays, marking the third-busiest holiday-travel season since 2000. However, forecasters expect a significant winter storm to interfere with some of those plans.

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Sussex County logged the cheapest average price Monday at $3.19 per gallon, while Somerset County's ($3.46) was the most expensive, AAA's New Jersey map shows.

Twenty states averaged lower than $3 per gallon, according to the auto club.

"The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last spring," said AAA spokesperson Andrew Gross said in a statement. "Combined with low seasonal demand, gas prices could slide a bit more before leveling off."

National gas demand decreased slightly last week, from 8.36 to 8.26 million barrels per day, according to the U.S. Energy Information Administration. This coincides with the beginning of the winter driving season, when fewer hit the road because of shorter days and worsening weather, AAA says.

Diesel prices still have ground to make up. A gallon of diesel in New Jersey averaged $3.66 a year ago but stood at $5.15 as of Monday. But that could improve soon, according to GasBuddy.

"While the declines for gasoline may fade, diesel prices still have considerable ground to cover, and could fall another 50 cents or more in the weeks ahead," said Patrick De Haan, GasBuddy's head of petroleum analysis. "Fuel prices across the board have been plunging back into territory more Americans feel is normal, which could certainly boost economic sentiment going forward."